ipod
11/03/2005, 7:50pm, EST
Thursday, November 3rd
Column: Apple could learn from past mistakes
After transforming the digital music industry with the iPod, Apple is on a high. But the company has enjoyed success before - only to see it vanish, warns Kieren McCarthy. "This is not the first time Apple has found itself with the best product in a market it has almost single-handedly created. And yet the Mac - launched with the famous TV advertisment 1984, which was aired once during that year's Superbowl - is now no more than a bit player. The Newton is long dead, and the Apple II is a museum piece." McCarthy says Apple's innovation "comes with a price: arrogance and a deep-seated control instinct." Having created a market, Apple's conviction has "frequently mutated into stubbornness and it has seen the market run off in a different direction once competitors have caught up."
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Talk about a myopic, self-serving view of Apple's history just to make a woefully simplistic analogy about Apple's current dominance of the portable music player market being similar their early dominance of the home computer market. I'm so tired of talking heads blathering out some off-the-cuff proclamation just because the dimmest flicker of electricity actually managed to flit across some of their neurons producing a temporary delusion of profundity. Of course actually examining some of these issues might have more revelatory power than the tidy little piece of fluff writing linked above. Must have something to do with the real world not being tidy.
Yet (even before ipod) Jobs was, what, 15th wealthiest dude on the continent.
The clueless reporting for the clueless.
Dummy.
I worry every day about the content of this article. Steve does have a history of playing it strong at the right "beginning" times and blowing it by staying tough when he should compromise. Some of you might remember the chance Steve had to sell the NeXT OS to IBM, but tried to bully them into submission. Windows would have been a memory, not NeXT. He played hard, and lost the deal.
Disney has now created its own animation house, and although more than a decade behind in current technolgies and talent, it won't take but a fraction of that time to catch up. Steve needs to learn how to get along with all the kids. It doesn't mean he can't continue to "control" them. It just means he's going to have to learn how to talk to fans. ;-)
Apple did learn from past mistakes and allowed iTunes and the iPod to work with Windows. And look at them now. Nothing else comes close to being as cool or selling as well. They've also lowered their prices to compete with PC's and came up with the Mac mini. The Apple of the late 80's wouldn't have compromised like that and that's why they got into trouble.
see their sales drop like a rock (remember the iPod has about 70% of the portable market) and Apple would ramp up the indy business and be the destination for all the cool cats- while concentrating on the next big thing: video.
No one seems to realize that they are selling "Lost" for $2 a pop when you can watch it and record it for free at a higher resolution.
What happens when they offer "The Sopranos" direct- and I don't have to buy cable, plus the digital tier plus HBO?
Can we say they become the ultimate middle man?
Apple is seeing Mac share rise right now- from 3% to 5% of the market- they had record sales- and their stock is cruising.
Apple doesn't have anything to worry about- as long as the switch to Intel processors goes smoothly.
I think the only thing sadder than folks who write chicken little articles like this one, are the folks that shamelessly support notions that minor successes constitutes a privilege to behave in any fashion they wish.
I personally think Steve is doing the right thing pushing for $.99 fixed prices. It's impulsive, profitable, and the artists really make a decent amount of money. Videos at $2 is a great price. However, if every single record company disagrees with you, and they really have you by the balls, you have to compromise. End of story.
I believe Steve has learned this lesson. It will be interesting to see how he surprises all of us.
If Apple doesn't make money on iTunes, so what if they aren't allowed to sell it!! 99% is not from there, Apple makes zero selling tunes, just for iPod owners who want to pay! ( What do you think we put on them? 60 gigs of paid for AAC ? )
Yeah, wonder what happens when you don't fire the founder after doing a "Good Job" on a product. Wonder what happens when you don't let soda pop salesman invent PDA's & run Apple to the ground.... Wonder how Gates competes with Steve... Pass the popcorn!
"What loss are they going to experience if Apple bullies the record labels into dropping them? Think about the 10s of MILLIONS of iPods with NO CONTENT. Enjoy your Lost video guys! because that's all you're going to be able to do with your $399 toys."
Considering that iPod owners only download a very minor amount of songs from the iTunes store, out of the grand total of what they have on their iPods (ever heard of CDs?), I doubt very much that mlowe's prediction even has a chance of success... Sounds like you're qualified to sit in a cubicle, and 'analyse' the market.
This isn't to say that the threat of the record companies isn't wihout merit, but considering this is an industry not known for taking risks, and yanking the content from Apple *IS* a risk, I doubt very much any CEO wants to be the one to cause an instant 20% loss in a given quarter.